Fibonacci Calculator - A Powerful Technical Tool
The Fibonacci calculator will show you the retracement and extension levels according to the popular Fibonacci theory used in forex trading.
Uptrend |
*) The highest price point according to your observations
(example: 1.35000)
*) The lowest price point according to your observations
(example: 1.31000) |
Retracements | |
0% (b) | |
23.6% | |
38.2% | |
50% | |
61.8% | |
76.4% | |
100% (a) | |
138.2% |
Extensions | |
261.8% | |
200% | |
161.8% | |
138.2% | |
100% | |
61.8% | |
50% | |
38.2% | |
23.6% |
Downtrend |
*) The highest price point according to your observations
(example: 1.35000)
*) The lowest price point according to your observations
(example: 1.31000) |
Retracements | |
138.2% | |
100% (a) | |
76.4% | |
61.8% | |
50% | |
38.2% | |
23.6% | |
0% (b) |
Extensions | |
23.6% | |
38.2% | |
50% | |
61.8% | |
100% | |
138.2% | |
161.8% | |
200% | |
261.8% |
How to apply pullback strategy with Fibonacci and trendline?
- Identify the Trend: Determine whether the trend is bullish or bearish.
- Select Time Frame: To minimize price noise, it is advisable to utilize 1-hour or longer time frame.
- Determine Peak Points: Find the most recent swing high and swing low points to draw Fibonacci retracements.
- Entry at Fibonacci Levels: Look for opportunities to enter trades when there is a retracement between the 50% and 61.8% Fibonacci levels.
- Determine Exit: Set stop loss and take profit orders based on the latest swing points.
Continue Reading at 5 Pullback Trading Strategies to Try
How do Fibonacci numbers work and why are they called the Golden Ratio?
In "Liber Abaci", Leonardo Pisano describes a series of numbers where each number after 0 and 1 is the sum of the two previous numbers. So, the series consists of 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, and so on to infinity. In the Fibonacci number series, each number is approximately 1.618 times larger than the previous number.
In mathematics, the number 1.618 is also called Phi, or the Golden Ratio; while the opposite is 0.618. The Golden Ratio is said to appear mysteriously in the structure of natural phenomena, architectural and artistic masterpieces, as well as in the biological sciences. Among them are Leonardo Da Vinci's Mona Lisa painting, Katsushika Hokusai's The Great Wave Off Kanagawa, the Parthenon (Greece) temple, sunflowers, snail shells, human faces, and even the circle of galaxies in outer space. Many artists consider the Golden Ratio to represent a certain harmony that causes something to be seen as beautiful.
Continue Reading at Learn How to Use Fibonacci in Financial Trading
How to draw Fibonacci Retracement?
To draw Fibonacci Retracement, we have to mark the highest price point (High) or the lowest price (Low) on the chart within a certain time period. It seems easy, but it is actually highly dependent on your sensitivity and trading setup. As such, we can limit it to the length of the last few candles. For example, the last 60 candles are marked with a gold vertical line in the chart. Thus, we only need to take into account the highs and lows of the last 60 candles on the rightmost side of the chart.
Please take note: the correct path to draw Fibonacci Retracement is from left to right; so the retracement direction can be either from top to bottom (Downtrend) or from bottom to top (Uptrend).
Continue Reading at Learn How to Use Fibonacci in Financial Trading
How to define Fibonacci for forex trading?
Generally, traders use Fibonacci patterns to find the retracement of the current trend. Price movements in the forex market dynamically tend to "bounce" (retrace) from the Fibonacci lines, where these lines represent certain price levels that market participants always monitor before they trade. The stages are divided into the following series of numbers:
- Retracements: 0, 0.23, 0.38, 0.5, 0.61, 0.78
- Extensions: 1.27 and 1.61
If the trend is relatively strong because it is driven by certain high impact events, the price will dash through the retracement limit and is likely to experience a reversal after hitting the limit on the extension line.
Continue Reading at 5 Powerful Strategies of Fibonacci Patterns
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